JAE Yamagata Begins Construction of New Building at 2nd Plant

April 21, 2022
Japan Aviation Electronics Industry, Ltd.
JAE Yamagata, Ltd.

Japan Aviation Electronics Industry, Ltd. (JAE) has decided to construct a new building at the 2nd Plant of JAE Yamagata, Ltd. (Shinjo-shi, Yamagata. President: Shunichi Naganuma), a production site for its Connector Business. A groundbreaking ceremony was held today. As part of the growth strategy of the Medium-Term Management Plan for the JAE Group, we aim to strengthen our global supply chain while continuing to enhance our production systems for connectors for the automotive and industrial markets.

Since its establishment, JAE Yamagata has played a role as a core stamping site for the JAE Group. It has expanded its business to molding and connector assembly and grown as a production site for mainly mobile device and automotive connectors. Meanwhile, JAE Yamagata has enhanced its production system by, among other things, constructing the 2nd Plant in 2006 and the 1st Plant Building D in 2013, making it the main plant for the Connector Business alongside JAE Hirosaki, Ltd. (Hirosaki-shi, Aomori).
The recent decision to construct the new building was made in order to expand production capacity and to comply with the growing demands for EV (electric vehicle) connectors, as well as to strengthen our supply chain through increased domestic production as part of growth investment for medium-term business expansion of the JAE Group.
The background and objectives of the construction of the new building are as follows:

■Strengthen production infrastructure for medium-term growth of the JAE Group

The JAE Group Medium-Term Management Plan announced in April 2021 sets a goal of achieving net sales of ¥300 billion in fiscal 2025 (1.4 times compared to fiscal 2020). In order to achieve this goal, the JAE Group plans to make capital and production infrastructure investments of over ¥100 billion over the next five years to enhance its production capacity.
Based on this plan, the construction of this new building will enhance our production capacity, especially for the fast-growing EV and industrial markets. It will also continue to enhance the production capabilities at three of our domestic sites: the Akishima Plant, JAE Hirosaki, and JAE Yamagata, making them the core sites for the Group.

■Establish production technology and expand production capacity for EV (electric vehicle) connectors

In view of expanding production of high current, high voltage connectors required for EVs (which are expected to increase in the future), we are introducing stamping and molding machines which will be among the largest in our Group. We will accumulate technology through mass production and make JAE Yamagata a site that will lead the Group in production technology for high current, high voltage connectors.

■Strengthen the global supply chain

With global concerns regarding risks to the supply chain due to the effects of COVID-19 and changes in geopolitical situations, we will make the transition to dual-site (overseas and domestic) production and work to expand domestic production capacities for products including automobile and industrial equipment parts by improving our domestic production capacity.

In line with the above policy, we moved forward with preparations such as the acquisition of land with the cooperation of Niigata prefecture and Shinjo City, leading us to start construction today.
The total floor area for the 2nd Plant B Building, for which construction will start today, is approximately 16,000 square meters. This will expand the total floor area of the JAE Yamagata plant from roughly 33,000 square meters to 49,000 square meters, which is approximately 1.5 times the current size. We also aim for an “environmentally friendly plant” by moving forward with the introduction of energy-efficient equipment and visualization of electric consumption.

Completion of the 2nd Plant B Building is scheduled for spring 2023.

Rendering of 2nd Plant B Building

■2nd Plant B Building, JAE Yamagata

■JAE Yamagata

Information and details given here are as of the date of publication.
Please note that the details may be changed.